About this Show

World Business Today

News/Business. Colleen McEdwards, Pauline Chiou. The day's global business news with a focus on international business and market trends.

NETWORK
CNN

DURATION
01:00:00

RATING

SCANNED IN
Annapolis, MD, USA

SOURCE
Comcast Cable

TUNER
Port 1234

VIDEO CODEC
mpeg2video

AUDIO CODEC
mp2

PIXEL WIDTH
720

PIXEL HEIGHT
480

TOPIC FREQUENCY

U.s. 20, Libya 9, Pauline 9, Tokyo 8, Britain 8, Nina 7, Detroit 7, Us 7, Latin America 6, Europe 5, Bahrain 5, Egypt 5, Hong Kong 4, Chile 4, Portugal 4, Obama 3, Gadhafi 3, United States 3, Cnn 3, Moammar Gadhafi 3,
Borrow a DVD
of this show
  CNN    World Business Today    News/Business. Colleen McEdwards, Pauline Chiou. The day's  
   global business news with a focus on international business...  

    March 23, 2011
    4:00 - 5:00am EDT  

4:00am
this can't continue like this. >> wissam, thank you very ch indeed. i appreciate it. we'll be watching the protests with great interest in syria, as revolution spreads and continues to spread through the middle east. revolution spreads and continues to spread through the middle east. that's all for us tonight. a very warm welcome to "world business today." i'm pauline chiou at cnn hong kong. >> the top stories on this wednesday, march 23rd. >> the libyans will defeat them.
4:01am
>> gadhafi stands firm. >> there's more belt tightening in britain today to try to plug a gaping hole in the country's public finances. and it was once the engine of america. we bring you the startling new figures on detroit's mass population exodus. before all of that, we want to update you on the situation now in japan. black smoke has been seen rising out of the fukushima daichi plant number three reactor building. this is the reactor that has been giving crew there's some trouble the past couple of days. tokyo electric power company says some workers have been evacuated from the plant. we will have more on that from tokyo a bit later on in the show. nina? >> pauline, let's turn our attention towards libya, where coalition bombs and missiles continue to rain down. aircraft like this u.s. marine corps harrier jet have flown
4:02am
more than 212 missions so far against the libyan forces. ships in the mediterranean has launched more than 160 tomahawk cruise missiles. in the daylight the damage is becoming clear. this is what is left of several large rocket launchers, trucks and also other military hardware in tripoli's port area. far to the east, a u.s. fighter plane crashed due to mechanical problems. that happened near the opposition strong hold of bengahzi. the two-man crew parachuted from the doomed aircraft. u.s. marines managed to extract crewmen, one was picked up by rebels and taken to a luxury hotel suite. he's back in american hands. two days after the coalition missile slammed into his tripoli compound, a defined moammar gadhafi has been addressing supporters. he urged muslims worldwide to join the battle against what he calls blatant aggression. >> translator: we will be victorious in this fight. we will not give up.
4:03am
they will not penalize us. we are making fun of their rockets. the libyans are laughing at these rockets. we will defeat them. in any way, in me method. in the short time or the long-term, we will defeat them. we are prepared for the fight, if it is short or long. well, the tone is rather different in the united states where there is concern that the u.s. may not have the stomach for a long-term campaign against libya. >> we got two wars going on. both of them going for the better part of a decade. we've got a fiscal deficit here that we're trying to get under control. i think americans are rightly saying do we not want to take on another major conflict? the optimistic scenario is that the gadhafi regime step back
4:04am
under the pressure that it's now facing and that this no-fly zone essentially come to a stasus. we can stop the operation soon. i will not bet on that. we may be in it for the long haul. u.s. president barack obama insists that it's only a matter of days before the u.s. turns over control of the campaign to other coalition members. and unrest continues elsewhere in the middle east. in yemen, the president has defied calls for his immediate departure and instead he's offered to step down at the beginning of next year. but that's fast enough for his growing opposition. in the southern syrian city of dara, government forces have opened fire on demonstrators. there are reports of up to six people were killed. the bloodshed comes one day after authorities in syria arrested a prominent human rights activist.
4:05am
to bahrain, the government is tells its citizens to stay out of lebanon this comes after hamas came out in support of bahrain's majority shiite population who have been protesting against their country's minority sunni rulers. the unrest in the middle east can also create challenges for companies doing business there, especially if they already have established contracts with old regimes. daniel, you have assets right across the spectrum from bahrain to egypt. what is it like having contracts in place and then regime change? >> well, violent regime change presents the problem as far as contracts are concerned. most of the contracts between international companies are done in jurisdictions that don't cover the local law.
4:06am
so, international law or dfic, in the united arab emirates. a lot of contracts are entered into under sharia law, which, in that respect, presents a different set of challenges. >> does that protect you more or less then? >> i think sharia law is very interesting. it's more focused upon an equitable distribution so in that respect there are certain protections there, but not protections against regime change. >> so, let's say, for instance, out of all of these countries you're invested in, i understand you're not invested in libya. which one are you most worried about at the moment? would be it bahrain? >> bahrain is a very small country. the unrest in bahrain, where the total population is 500,000 and the intervention from saudi arabia and the united arab emirates is over 1,000 police and soldiers.
4:07am
i think bahrain will stabilize before long. in terms of where i'm more worried about in -- across the region, i would say it has to be in places like yemen and so forth. >> you have more significant operations in egypt. you established your own office there a couple of years ago and have staff there. how worried are you about the regime change now? are they pro dbusiness or anti-business? we have the stock exchange opening this morning? >> yes. the stock exchange was stopped for a period of time, that was disappointed. they have seen the light and now are opening it and they will remove some of these discussions about having suspensions, though there will be individual stock suspensions today. >> daniel broby, thank you very much for joining us on the show. pauline? nina, the fighting in libya and the protests in other parts of the arab world are continuing to put pressure on oil prices.
4:08am
more on that in a moment. right now we want to turn our attention back to japan where the daily press conference is going on with the chief cabinet secretary, yukio edano. let's listen in to the latest about nuclear reactor number three. >> the nuclear and industrial safety agency made a report with regards to the radiation exposure estimations based. the details will be announced by the agency themselves. please contact the agency if you are interested in detail information. this is with regards to the atmospheric, and based on the climate conditions, the radiation exposure to thyroid was estimated and so far we have been measuring and monitoring the radiation dosage in the unit
4:09am
of microsieverts, including the site at the nuclear power plant, we have done the measurement and the results have been announced to you and we have gained data points. however when it comes to radioactive materials in general in atmosphere, we are trying to measure it and then we will see how much of the radioactive materials are actually emitted from the nuclear power plant. we are trying to come up on the estimate for that. based on the estimation we would like to see how and where the radioactive materials are dispersed and whether they are elevating to the level causing human health hazard based on climate conditions. so this is estimations based on simulation that we run. as i mentioned in the morning conference as well, by using this system well, we would like to come up with a good estimation. the instruction that we have
4:10am
given, as i have already reported to you, and as i already mentioned as well from nuclear power plant, the amount of radioactive materials have been emitted, unfortunately given the current situation of the plant, we are not able to measure the amount of the radioactive materials from the plant itself and we are calculating back to see as an estimate how much of the radioactive materials seems to be estimated coming from the plant. that is something we are trying to work out. in order to do this estimation, we first do need to measure the radioactive materials in the atmosphere. furthermore, towards inland side on the upstream of the wind, we do have to take this measurement. we were able to do this monitoring yesterday, based on that and run simulation. the results of the simulation work was reported. and the results is as follows.
4:11am
after the accident of nuclear power plant in fukushima, if we assume we stay outdoor throughout the entire day, then 100 millisievert or above would be expected the level to be exposure to radiation level in certain area, even outside the 30 kilometer range from the nuclear power plant there could be some places where the actual exposure to radiation could go beyond 100. however, at this point in time there's no necessity for people in particular districts to evacuate from where they are at the moment. and this radiation level monitoring, as well as even more accurate simulation are commissioned to be done by the
4:12am
experts. and 100 millisieverts is the level to the exposure to radiation that will cause health hazard. >> you are looking at the live news conference from the chief cabinet secretary, yukio edano.o he says they are trying to measure the radioactive materials in the atmosphere. he did not touch on yet the latest news we have been receiving from our own crews that there has been new sightings of black smoke, grayish black smoke coming out of fugnuclear reactor number th. we are trying to figure out what the cause of this smoke is and we are following this story throughout the day. back to nina in london. thank you very much. let's bring you the latest stock
4:13am
market action here. this is where the markets stand. they did finish broadly low yesterday. already 12 minutes into the trading session, as you can see, we're seeing some of those losses being exacerbated. heaviest losses coming from the markets in london and frankfurt. in the meantime, let's look at how the currencies are doing. the euro has been slipping today ahead of portugal's austerity vote. opposition parties in portugal have refused to back austerity measures drafted to help a greece-style bailout. currently trading at 1.4157. if they refuse to back that, it could trigger snap elections inside portugal and dominate the eu summit tomorrow in which some leaders in the region were hoping to strike a grand bargain to solve the debt crisis for once and for all. also in focus is the british pound ahead of the uk budget it has been falling against the
4:14am
dollar, the japanese yen that been gaining today. pauline? nina, here in asia, japanese markets failed to maintain the gains from tuesday. in fact, it's quit a different story. a profit-taking sent tokyo's main index lower as investors reacted to new radiation warnings, this time in the tap water in tokyo. after the markets close, japan's golf. said that the economic cost from the earthquake and tsunami could total $308 billion. meanwhile, around the rest of the region, let's look at how they fared. shares of cole companies dragged the market down in hong kong. banking and energy stocks gave sydney just a slight boost. there the shanghai composite is up more than 1%. a bombshell for britain the day before the government unveils its austerity budget. coming up after the break, how will new inflation numbers effect britain's ability to meet its deficit-slashing goals?
4:15am
we'll let you know and we'll be right back.
4:16am
4:17am
4:18am
a bombshell for britain, even as the country's conservative government preparing to unveil its 2011 us a terry budget on wednesday, data released yesterday indicates that consumer prices have shot up across the country. in the past year rising 4.4%. this in total means that there's even less money to spend as the government tries to stick with its plan of slashing its record budget deficit by the year 2015. the plan including eliminating some $132 billion worth of spending over the next four years to come. it's expected that the finance minister, george osborne's new budget will seek to boost growth without easing up on those deep cuts. osborne hinted he will be canceling an increase in the fuel tax as planned for the month of april. the budget may also scrap a
4:19am
planned increase in air passenger duties. but the surprising inflation rate means the government may face a difficult choice today. >> though spending goes up, incomes have not gone up so tax revenues haven't. ultimately this sort of inflation shot we're having in britain at the moment doesn't help the public finances, so borrowing will be higher. >> well, the main goal of the budget is to shrink the country's deficit, the government and british businesses are also hoping it can stimulate growth. but can it really do both at the same time? joining me now to explore that possibility is colin stanbridge, he's had a long career as a british television journalist. good to see you. run us through what we can expect later today. >> the word growth will be huged a huge amount of time. one thing is certain, if you're doing your book on this budget,
4:20am
put your money on the number of times growth will be used. i think what we'll see is not many rabbits out of hats. i don't think there is much wiggle room. i think that's for certain. what i hope we see is a commitment to reduce the sorts of barriers that especially small firms are facing at this moment in time what we're looking for is a commitment to stop things like the default retirement age being scrapped. changes in paternity leave. all those things preventing businesses in hr terms from recruiting people. don't think we'll see many fiscal moves. i don't think it has the possibility of doing that. >> we have already seen so much news already on the deficit and budget front since this government took over. we had the october spending review. it seems as though this is probably going to be more fiscally neutral, but inflation is the back drop, that means tax receipts will be worth less and
4:21am
less in relative terms. >> they will indeed. the last things businesses need is a rise in the interest rate. i hope the government -- it won't be the government but i hope the npc will decide that actually in the long-term interest of britain and britain's british business that you can't put the rates up. there are sam small things that the chancellor can do. what's important about this budget is that it gives confidence to companies to want to expand, to want to employ more people which is a huge government goal. and i think that if they can do some small things -- so, for example, capital allowances. if you're able to roll over your capital allowances, they will cut those. if you're able to roll over those things. if you're able to cut small firms out of v.a.t., raise the limit to 100,000, there may be things to persuade businesses to go out and do things. >> one thing that will help small firms and the average person on the street is fuel
4:22am
prices. what will happen there? there's a lot of talk about the fuel price stabilizer tax that moves in sync with the old price to make sure it doesn't go up as much as it has recently. >> we had the prime minister saying on a number of occasions that the treasury is looking at this. i think it's now time to act. fuel prices effects all types of businesses. it effects those people obviously who are moving goods around but also those people who are just in their daily lives. i hope we're going to turn this talk about this sort of stabilizer, this sort of balancing mechanism, actually turning into something that actually works. of course, you know, the rise in oil prices at the pumps means the government is taking more in v.a.t.. >> colin, we have to live it there. thank you very much for your views. don't go away. "world business today" continues after this short break. no other medicine, not even advil pm,
4:23am
is more effective for pain and sleeplessness. motrin pm. i always keep it in the house. that and boston crème pie, white chocolate strawberries. [ female announcer ] yoplait light -- over 30 delicious flavors at about 100 calories. babe, what are you doing?! ♪ before i started taking abilify, i was taking an antidepressant alone. most days i could put on a brave face and muddle through. but other days i still struggled with my depression. i was managing, but it always had a way of creeping up on me. i felt stuck. i just couldn't shake my depression. so i talked to my doctor. he said adding abilify to my antidepressant could help with my depression, and that some people had symptom improvement as early as 1 to 2 weeks. he also told me about a free trial offer from abilify! now i feel more in control of my depression. [ male announcer ] abilify is not for everyone. call your doctor if your depression worsens
4:24am
or if you have unusual changes in behavior, or thoughts of suicide. antidepressants can increase these in children, teens and young adults. elderly dementia patients taking abilify have an increased risk of death or stroke. call your doctor if you have high fever, stiff muscles and confusion to address a possible life-threatening condition. or if you have uncontrollable muscle movements, as these could become permanent. high blood sugar has been reported with abilify and medicines like it. in some cases, extreme high blood sugar can lead to coma or death. other risks include decreases in white blood cells, which can be serious, dizziness upon standing, seizures, trouble swallowing, and impaired judgment or motor skills. depression used to define me, then my doctor added abilify to my antidepressant. now, i feel better. [ male announcer ] if you're still struggling with depression talk to your doctor to see if the option of adding abilify is right for you. and be sure to ask about the free trial offer.
4:25am
welcome back. this is "world business today" on cnn. u.s. president barack obama is unveiling a raft of new partnerships in latin america to help bring better economic progress and stability to the region. an exclusive interview with cnn in el salvador, mr. obama said the partnership needs to go beyond politics. >> the entire region is much less interested in ideology, much less interested in left or right. it's interested in practical results. how can we solve problems to help kids get an education, help people support themselves and find a job, help businesses develop, help the entire region grow. that's the kind of partnership we want. we still have specific programs we're involved with here in el salvador. they received a millennium challenge grant, is that provides over $400 million to
4:26am
help this country develop. they are one of four countries that we selected for a partnership for growth that will involve us working very closely with their economic team to find out what are the barriers to economic development in this country. so we still have, yes, very specific programs but the context has changed because we want to be seen as a partner to a region already growing and vibrant. >> that's president obama in el salvador there. in chile, after a year in office, the chilean president has seen more than think share of domestic crises. now he's looking to the future with stronger partnerships around the world. we have more now on president obama's visit and chile's changing prospects. >> some specific deals were reached between the united states and latin america. also this visit sent a very
4:27am
specific message, it is has the united states leads latin america today and tomorrow. earlier i spoke with the president of chile. >> we are beginning a new era, the u.s. and latin america will talk to each other in equal terms. with rights, bgripes but also responsibility for both sides. that's the right way to start this new approach. >> president, why do you think it's beneficial for countries like chile to sustain relationship with the u.s.? one might argue given the economic crisis in the u.s. and that effecting other countries in the world, it will be more interesting and helpful to stay away from the united states now. the u.s. is still and will stay like that as the most important economic power. so we have the free trade agreement with the u.s., and it has been extremely useful and
4:28am
fruitful, both for the u.s. and for chile. >> president pinera said president obama's visit to latin america is a nbeginning of a ne era. latin america grew 8% last year as a commodity region. it is resistant to u.s. economic crisis, and it is peaceful. >> we have much more to come in the second half of "world business today." so don't go away. we'll be taking a look at an american city in sharp decline, where one quarter of the population has moved out. and also how much does it cost to launch an air war against moammar gadhafi? we'll be adding up the numbers so far after the break.
4:29am
4:30am
4:31am
4:32am
welcome back to "world business today." i'm pauline shue at cnn hong kong. >> i'm nina dos santos in london. >> we want to bring you up to date on the situation in japan. the first one is that blackish gray smoke is spewing out of nuclear reactor number three of the fukushima daichi power plant. anna is following this story with much more details. we just saw a news conference from the government spokesperson. did we learn any new information about this smoke coming out of the reactor? >> we just heard from chief cabinet secretary edano.
4:33am
he was speaking about the water issue. we did get off the phone from tepco, they confirmed that smoke, grayish, blackish smoke is rising from reactor three. they say something is burning. they just don't know what it is. of course this is raising huge alarm at the site. there's been a massive evacuation around reactor number three. and we believe also that reactors one and two, there have been evacuations from there as well. reactor three has been a problem for officials for the last couple of days. this, of course, is where there was that explosion, the fire, the build up of pressure, and then just a couple of days ago reactors two and three, there was smoke rising from both of those. officials earlier today said it was barely visible and they had the situation under control. then in the last couple of hours, that grayish black smoke has been seen rising from the reactor. all the while, paulina, they
4:34am
have been trying to reconnect power to the six reactors. we know they got them to the reactors but they can't get the pumps working just yet. a lot of that has to be due to the damage caused by the tsunami. the saltwater has corroded many, many parts. the workers have been trying to replace those parts and get the pumps working, but these fires and the smoke rising is causing is many delays. >> so a lot of issues there that tepco and the government is trying to get a handle on. another issue is the tap water in tokyo. what is the latest situation there? >> that's an issue that's just come up in the last couple of hours. that's something that chief cabinet secretary edano addressed a short time ago. he said that high levels of radiation have been detected in t tap here in tokyo. we are some 250 kilometers from
4:35am
the fukushima daichi power plant this is causing real concern. the government officials are telling parents not to allow their children, infants to have this drinking water. specifically not to use this tap water in baby formula. so that is what they're saying. the reason being is that iodine levels are much higher. this particular science is measured in becrels, and the limit for children is 100. this is exceeding 210. this is double the limit. this is why there's that alarm going out. they are asking people to refrain from using that tap water. and however they are saying that it is not going to pose an immediate health problem that would only occur over a long time. pauline? >> all right, anna. so yet another concern in addition to some of the food safety issues that we've been
4:36am
reporting on. thanks so much for the latest update. so, as that crisis unfolds in japan, nina, we are keeping our eye on the situation in north africa. >> we are, indeed. let's turn our attention towards libya. coalition pilots have flown more than 300 missions, tomahawk cruise missiles continue to pummel targets there. a total of 162 have been fired. president obama says he expects to turn u.s. control of the bombing operations over to coalition forces within just a few days. in tripoli, gadhafi's government says coalition attacks are killing civilians. but on tuesday, libyan minders took journalists to see one bomb site that didn't seem to have anything to do with civilians. nick robertson was there. >> reporter: this is very obviously, very obviously a military facility here.
4:37am
what government officials are saying, is that this was just a repair facility. they are saying nothing was working here at this particular facility. when you look inside the bodies of these rocket launchers here there are no missiles inside them. there's plenty of evidence around here to support the best assessment that this was very much a military target. that it had an ongoing military operation. four of the mobile rocket systems destroyed in the attack, other equipment not damaged. the government not so happy for us to see. >> the writing on them here, we're told this whole facility here is a are pair facility. missile systems written on here, very clearly what from we can see, russian made. so what was this facility here? >> you see, some cars.
4:38am
>> rocket launchers. >> this is rocket. this is launchers, but rocket inside, i guess not active, you see? >> but there's rockets stored around the corner? >> yes, you see here, i'm not from this department, but i know this is big storage. >> the strike here was a little over 12 hours ago. the smoldering wreckage is still burning here. this was like cables that had been on fire here. and this is a creator from one of the missiles. and this gives you an idea of just how deep and big this hole is. therefore, any of the scale and size and scope of the missiles fired in here. we are right in the harbor facility here. just around the corner, i will take you to look at it right now, i just spotted it, this is the harbor facility. not far from here, there are naval vessels, libyan naval vessels.
4:39am
i'm looking up over there now, i can see what appears to be some sort of anti-aircraft guns, some sort of weapon mounted up there. officials say few injuries here. debris all around the dockyard. it's not clear why the government has brought us to this place that is so obviously, obviously a military facility. but perhaps the answer is up there on that burnt-out rocket launcher. the man passing down the picture of moammar gadhafi. they seem to want to show, a, they're the victims and, b, they're not -- not backing down nic robertson, cnn, typically, libya. the cost of the no-fly zone already piling up. the first day of military action cost $100 million alone, that's just the cost of the u.s. missiles fired into libya. a report from a washington think tank estimates the initial stages of this no-fly zone could cost coalition forces between
4:40am
500 million and $1 billion. the report estimates that maintaining a full no-fly zone over libya could cost between 100 million to 300 million per week. and if military operations continue for a period of six months, the total price tag could end up being closer to somewhere between 3.1 billion and $8.8 billion. that gives you a scale of the cost of this kind of operation in the short-term and also potentially in the long-term. let's see how european markets stand at the moment with all of this and the ongoing situation in japan has been weighing on the european stock markets. here's how we stand in europe. some of these markets currently down to the tune of about a third of 1% for the dax. on the cac, the uk budget comes around midday today that weighing on the ftse 100. also the currencies taking a battery, namely the euro. we have the portuguese austerity
4:41am
vote slated today. that issue likely to dominate in the eu summit tomorrow. markets suffering, adding to yesterday's losses albeit not as much. pauline? >> i'm afraid the asian markets did not give you a good lead-in today. here in asia, japan led the losses. profit taking sent tokyo's main index lower as investors reacted to new radiation warnings, this time in tokyo's tap water. we heard an update from my colleague a colleague about that. after the markets closed j pan's government said the cost of the economy of the earthquake and the tsunami could total $308 billion. meanwhile, around the rest of the region, shares of cole companies dragged down the market, the hang seng here in hong kong. and banking and energy stocks gave sydney a slight boost.
4:42am
japanese exporters have been hit especially hard by the earthquake and the tsunami damage. sony closed slightly lower. and the world's biggest carmaker, toyota, lost more than 1% today. both companies have been hurt by parts supply shortages. sony says it is cutting output at five more plants at least until the end of this month. toyota says its 12 assembly plants will remain shut until at least saturday. it was once the engine of america. we bring you some startling new figures on detroit's mass population exodus. that's coming up next.
4:43am
4:44am
4:45am
hello. welcome back to "world business today." after being closed for 38 days, egypt's stock exchange finally reopened today but only to close again within a just a couple of seconds. ivan watson is at the exchange now in cairo.
4:46am
this sounds a bit bizarre. do we know why it closed so suddenly? >> reporter: it's just one of the circuit breakers has been put in place to stop what traders were predicting would be a bloodbath here. basically the main index dropped 5%, then automatically the market shuts for half an hour. that's what happened. it was remarkable. the finance minister led a rousing performance of the egyptian national anthem, confetti was thrown, and they waved egyptian flags, then rang the bell. and within less than 5 seconds, the entire stock market closed due to this circuit breaker. traders here are telling me they've never seen anything like this happen before. >> so, suddenly the party stopped. all right, i'van watson live at
4:47am
the stock exchange. thank you very much. let's go for some analysis from cnn abu dhabi. they were expecting a selloff when the egyptian stock exchange opened. but does this kind of a selloff surprise you? >> it don't surprise anyone, to be honest. this is the first time the stock market has been open since january 27th, as you said, that's two months. and investors have not had a chance to react to the uncharted changes we've seen in egypt, we've seen a regime change and a revolution. this is the first time the investors could react. the stock market chairman himself said he expected a selloff for the next three, four days. the circuit breakers were in place. the egx, if it falls below 5% automatically shuts down for 30 minutes. that's what we've seen. we're told it dropped about 9% within the first few seconds. now, the next circuit breaker,
4:48am
after these 30 minutes, if it falls below 10%, the chairman will decide what happens then. so far the chairman has told cnn, our ivan watson, he will let trade continue, and he won't stop the market again. but we'll have to see if that goes into effect. the reason it's important, they did open the stock market, as we've seen so many false alarms over the past couple of months saying they're going to open, they don't open. open and then they don't open. that's not a good sign for investors. investors want to see clear, transparent decisions. they want to see the authorities stick to them. that's why it was important for them to actually open the stock market today. pauline? >> as you mentioned there were so many delays in trying to open the exchange. why did they wait this long? >> again, pauline, as we mentioned, it's just completely unchartered territory. they didn't seem to know what they were doing or how to react to the changes in the country.
4:49am
a couple of things that might have pushed them a bit this week. first, we've talked about this before. the stock market has been shut for 38 business days. now, if they were shut for 40 days, it would have risked being taken off the msci, a key emerging markets index. secondly, the political situation has been really uncertain over the past couple of months, but over the weekend we saw a referendum being passed in egypt that paved the way for free and fair elections. and that would be a positive sign for investors. and a better environment in which to open the stock market. that probably helped them make a decision to open the market as well. and as our ivan watson spoke to the chairman of the stock market, he did say today the market would be open no matter what the consequences. and they've basically just come through with that decision. we'll just have to see what happens when they reopen in 30 minutes, and if we see another circuit breaker kick in again.
4:50am
pauline? >> it should be an interesting day in cairo, thank you very much leone. when we come back, right here on "world business today," we will head to the u.s. and to detroit to find out why so many people are leaving that city.
4:51am
4:52am
welcome back. you're watching "world business today." once the bustling industrial and carmaking hub, detroit's appeal seems now to be dwindling. a new u.s. census report shows detroit's population fell by 25% between the year 2000 and last year. that's a difference of nearly 240,000 people. and it puts detroit's current population at its lowest level in a century. americans rushed there in the mid 1900s. the auto industry began to take
4:53am
off. and in its heyday, detroit was home to nearly 1.9 million people. a lslump in the american car market has sent people leaving. it could mean millions of lost federal funding to the city and the state. let's turn our attention now to the forecast. and our meteorologist jennifer delgado is tracking more snow and rain for parts of the u.s. let's get an update for the business travelers out there who might be heading to the airports. jen? >> guess what? we have spring snow coming down through parts of the northern area of the u.s. you can see exactly where i'm talking about for north and south dakota. from minnesota, that snow even spreading over towards the east, including parts of pennsylvania and new york. in addition to that, we are dealing with rain out there. with the rain, we have a cold front and a warm front just to the northeast. we will be dealing with the
4:54am
potential of strong storms today, and some of those storms could produce tornadoes and gusty winds. speaking of tornadoes, let's get over to some video coming out of iowa. you are seeing a funnel cloud. you see the roping there. it's actually, if you look closely down towards the bottom of the screen, you can see some of that debris being kicked up by that cloud. this is out of creston, iowa. this is from one of our i-reporters, jennifer walsh. she did this safely. in addition to the severe weather for today and thursday morning, we will be dealing with snow. it's coming down now. we could see about 15 to 25 centimeters of snowfall. and we will also see more snow working in to parts of california. more of that mountain snow. anywhere you're seeing for areas up towards the northern part of the u.s., we're talking for the midwest and the northeast, we could see potentially 25 centimeters of snowfall, roughly five to seven inches coming down
4:55am
as we go through the rest of today. a little too warm to support snow through western and central europe. a big ridge of high pressure means mild temperatures in the afternoon as well as cool nights. look at the temperatures there, for paris, today a high of 16 degrees. it gets better for thursday and friday, high temperature of 18. temperatures running about 7 degrees above average. for landon, nina, you'll love that temperatures around 15. on a wider view across europe, really temperatures will be above freezing, so a good-looking day. pauline, not so bad for you over in hong kong. i know you started off with clouds but you'll stay dry, and that should please you. >> yes, dry is good. >> doesn't take much, right? >> the humid rain storms here. thank you very much. nina, let's look at the markets starting with europe. >> yes, indeed. that sunshine jennifer was telling us about putting people
4:56am
in a good mood but investors have their eyes firmly focused on a number of factors. we have portugal facing a bailout threat looming as the government nears collapse there, this after the opposition parties have withdrawn their crucial support for austerity measures. that's dragging down some markets and also dragging down the euro. in britain we have the budget looming, this coming a day after we found inflation was way above the central bank's 2% target, coming in at 4.4%. also not good news is that public sector borrowing last month hit a record for the month of february, a total of 11.8 billion pounds. that means the total public borrowing in the uk stands at 123.5 billion. so, adding that to the mix of issues that investors have already had to cope with over the last few days, pauline, such as libya, japan, as you can see stock markets still in the red, though just waiting to see what's going to happen later on
4:57am
today in europe and the uk. >> right. a lot of issues for investors to digest and also the asian markets for the most part ended in negative territory as well. that's all for this edition of "world business today." thanks for joining us. i'm pauline chiou in hong kong. >> i'm pauline dos san total. "world one is next."
4:58am
4:59am

Terms of Use (31 Dec 2014)